The Toronto-based parent company of the infidelity dating site Ashley Madison says it has reached a US$11.2-million settlement in American class-action lawsuits stemming from a massive security breach two years ago.
Ruby Corp., which was previously known as Avid Life Media, says the proposed settlement must first be approved by the United States District Court for the Eastern District of Missouri, where the lawsuits have been consolidated.
The lawsuits came after a cyberattack that exposed the personal dealings and financial information of millions of purported clients.
They allege Ashley Madison misled consumers about its security measures and had inadequate safeguards in place.
The company says it denies wrongdoing but agreed to settle to "avoid the uncertainty, expense, and inconvenience associated with continued litigation."
It says more information about the settlement and claims process will be released if the proposed deal is approved.